VPN (Virtual Private Network)

What is VPN (Virtual Private Network)?

A VPN (Virtual Private Network) is a technology that creates an encrypted tunnel over public networks like the internet, providing an environment as if you’re directly connected to a private network. All user traffic is encrypted, and the IP address is replaced with that of the VPN server, making it extremely difficult for third parties to eavesdrop on communications or identify users. It is used when corporate remote workers need to securely access company networks from anywhere, or when individuals want to protect their privacy while using the internet.

In a nutshell: “Building an invisible private tunnel under a public road so you can reach your destination safely without being observed.”

Key points:

• What it does: Encrypts communications and hides your real IP address while establishing a secure communication path
• Why it’s needed: Enables secure transmission of private data even on public networks
• Who uses it: Remote workers, digital nomads, privacy-conscious users, organizations with security requirements

Why it matters

Before the internet became widespread, the only way for company branches to communicate was by leasing expensive dedicated lines. With the internet’s arrival, communication became much cheaper, but public networks are inherently insecure. Malicious actors can easily intercept others’ communications and steal passwords or credit card information.

The advent of VPN significantly improved this situation. Now companies can use inexpensive internet connections while protecting communications through encryption. As remote work becomes increasingly common, the importance of VPN grows, allowing employees to access company networks securely from anywhere. At the individual level, VPN has become an essential technology for protecting privacy when using public Wi-Fi.

How it works

A VPN’s mechanism is built on three elements: encryption, authentication, and IP replacement.

First, the user’s computer launches VPN client software and connects to a VPN server. At this point, the user’s authentication credentials (username and password, or certificates) are sent to the server for verification. Once authenticated, an encrypted tunnel is established between the user’s computer and the VPN server.

Next, when the user performs normal internet communication, all traffic is sent to the VPN server. During this process, the user’s data is encrypted, making it unreadable even if intercepted. Once the data reaches the VPN server, it is decrypted and the server forwards the communication to its destination.

Finally, responses from the VPN server are encrypted again and sent back to the user’s computer. Importantly, from the perspective of external websites, the sender of the communication is not the user but the IP address of the VPN server. This conceals the user’s actual IP address (their location).

Real-world use cases

Secure remote access for corporate remote workers

When a sales representative accesses company systems from a hotel Wi-Fi during a business trip, using a VPN protects them from eavesdropping on the hotel network. Company systems are configured to accept only communications through VPN tunnels, preventing unauthorized access while enabling safe access to systems from anywhere.

Privacy protection when using public Wi-Fi

Public Wi-Fi at libraries and cafes is convenient but known to have low security. With VPN, the user’s communications and IP address are hidden, making it extremely difficult for malicious hackers to intercept and eavesdrop. VPN is especially essential when handling sensitive information like checking email or accessing online banking.

Secure data center connections for global enterprises

When a company with data centers in Japan and America needs to communicate securely between both locations, it uses VPN to establish a private network tunnel. While using the internet, encryption prevents eavesdropping and tampering, allowing secure transmission of confidential data.

Benefits and considerations

The greatest benefit of VPN is achieving strong security at low cost. Without expensive dedicated lines, users get a private network experience while using the internet. IP addresses being masked protects user privacy, and location information is never exposed. At the enterprise level, VPN enables both promoting remote work and ensuring security.

However, there are also considerations. Since all communications pass through the VPN server, if the VPN server itself doesn’t have appropriate security, communications may still be eavesdropped. It’s important to select a trustworthy VPN provider. Additionally, the encryption and decryption processes may slightly reduce communication speed. Furthermore, some websites and services block access from VPN, potentially reducing convenience.

Related terms

• VPC — An isolated network in the cloud that may be connected to on-premises networks using VPN
• Security — VPN provides security through encryption and is a critical component of enterprise security strategies
• IP Address — VPN hides the user’s real IP address and replaces it with the VPN server’s IP address
• Encryption — The foundational technology of VPN that makes communications unreadable to third parties
• Firewall — When combined with VPN, creates multi-layered security

Frequently asked questions

Q: Is there a difference between personal VPN and enterprise VPN?

A: Yes. Personal VPN focuses on privacy protection and is designed with simple interfaces for ease of use by beginners. Enterprise VPN emphasizes security and management capabilities, including features like multi-user management, granular access controls, and audit logs.

Q: Does using VPN make anything illegal?

A: VPN itself is not illegal. In most countries, VPN usage is legal. However, using VPN for illegal activities like copyright infringement or fraud is of course illegal. Additionally, in some countries, VPN usage is restricted.

Q: Will using VPN make me completely anonymous?

A: VPN provides strong privacy protection but doesn’t guarantee complete anonymity. If the VPN provider maintains communication logs, they could be submitted to authorities upon request. Additionally, there’s a possibility of indirect identification through browser fingerprinting and other techniques when connected to VPN.